As i know thematic funds are high risky…Is it advisable to invest in ICICI FMCG fund for long term, because returns are good for last few years continously. I m investing in 2value fund and 2focused fund, so i want to divert one fund to this sector. If yes which fund can divert. My portfolio is below (Investing by SIP – All long term goal)
- ABSL focused fund
- Franklin focused fund
- Icici pru value discovery
- Tata equity P/E
- Canara robeco emerging equites
- icici pru equity & debt fund
- dsp small cap
- franklin smaller cos.
Investing in too many fund may not really beneficial. Over diversification may lead to higher overlap among the portfolios of similar MF Schemes.
Thematic funds may show extreme cyclicatlity. Kindly do not invest lump sum corpus in them, instead go for SIPs in to these funds.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Dear thanks for reply,
The overlap between my funds are around & below 20%.
In the above portfolio which SIP can stop…pls suggest
ur selection will be valuable for me…Tks….My goal is Long term
Kindly note that portfolios of the Schemes do change over a period of time. It is advisable to maintain a minimalist portfolio and keep it simple.
The above listed funds are good ones.
But given a choice, I will stick to say one Small Cap fund instead of maintaining two Small cap Schemes in my portfolio.
If you have conviction with this selection, kindly go ahead with your investment strategy.